Waive, reinstate, or reverse interest or fees [AX 2012]

Updated: November 19, 2010

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

When interest notes are created, you sometimes must make adjustments to the interest and fees that they include. You can use the buttons on the Collect tab of the All customers list page to waive, reverse, or reinstate charges:

  • Waived charges are forgiven. You might waive a charge if, for example, a customer disputes the charge, and you want to maintain a good business relationship with the customer.

  • Reinstated charges become due again. You can reinstate charges that were previously waived. This is sometimes necessary if you decide that charges should not have been waived.

  • Reversed charges are removed from a customer’s account, and are no longer due. You might reverse charges if, for example, the wrong interest rate was selected to calculate the amount that a customer owes. You can use a separate process to recalculate interest and create an interest note with new charges for the customer.

All of these actions change an interest note, which is the business document that informs a customer when interest or fees have been charged to their account. When you waive or reverse interest or fees, a credit note or adjustment invoice is automatically created to settle the charges. If you reinstate waived charges, an invoice with a debit amount is automatically created to reinstate the charges that the customer owes. The following information describes the results of each action.

Action

Result for the customer

Process

Waive complete interest notes with all of the interest and fees that they include.

–or–

Select and waive fees or interest transactions that are part of interest notes.

The charges are forgiven.

A credit note, or adjustment invoice, is created for the customer, and is used to automatically settle the interest note, or the interest transactions or fees that you selected. The settled amount is equal to the total amount of the charges, minus any previous payments by the customer, and minus any amounts that were previously waived or written off.

If the amount of the credit note exceeds what the customer owes, you can convert the credit note to a vendor invoice. You can then give a refund to the customer. For more information, see Reimburse customers.

Reinstate complete interest notes with all of the interest and fees that they include.

–or–

Select and reinstate fees or interest transactions that are part of interest notes.

The waived amount is due again.

An invoice with a debit amount is created, and the amount is automatically settled against the charges that were previously waived. The actual interest notes are not reinstated. Instead, an invoice is created that shows the amount that is due from the customer.

The credit notes, or adjustment invoices, that were created to settle waived interest notes can still exist if they were not used to settle the interest notes. When this occurs, the outstanding credit notes are canceled. Outstanding credit notes are usually automatically settled when interest notes are waived. However, an outstanding credit note might exist if a customer paid an interest note, even though the customer disputed the charges.

Reverse complete interest notes.

–or–

Reverse selected interest transactions that are part of interest notes.

NoteNote

You cannot reverse a fee, but you can reverse a complete interest note that includes a fee.

The charges are no longer due from the customer. However, the charges become due again if you recalculate interest.

The process is the same as for waiving interest notes or selected interest transactions. A credit note, or adjustment invoice, is created for the customer. This is used to automatically settle the interest note.

You can use a separate process to recalculate interest and create a new interest note. For more information, see Interest calculation (class form).

Note Note

You can also use a separate process to write off bad debts, which marks all customer transactions for settlement instead of waiving only the charges that are part of interest notes. For more information, see Collections and credit in Accounts receivable and Key tasks: Collections.

In addition to adjusting interest notes, you can also remove interest charges on invoices using one of the following processes. Both processes also make adjustments to the related interest notes:

You can use this process to correct a posted invoice that is included in an interest note. The invoice is canceled and a new one is created. Interest on the transaction is also reversed on the interest note, if the interest note was posted. For more information, see Correct a posted free text invoice.

TipTip

This process copies the details from the existing invoice to a new one to make only the corrections you want.

  1. Click Accounts receivable > Common > Free text invoices > All free text invoices.

  2. Select the invoice to correct.

  3. On the Action Pane, click Correct invoice.

    NoteNote

    This button is available only if the Free text invoice correction configuration key is selected.

  4. Select a reason code and enter the canceled date for the invoice.

  5. Click Create corrected invoice. The Free text invoice form is displayed.

  6. Make any changes to the invoice.

  7. On the Action Pane, click Post.

  8. Click OK to post the invoice.

  9. Click Continue.

You can use this process to reverse a customer transaction on an invoice, when an invoice was created incorrectly. If the reversed customer transaction has interest included on an interest note, and the interest note was posted, interest on the transaction is also reversed on the interest note. The interest note is canceled if it has not been posted. For more information, see Reverse a transaction.

TipTip

After using this process, you can review the original and corrected invoices on the Overview tab of the Customer transactions form.

  1. Click Accounts receivable > Common > Customers > All customers.

  2. Select a customer account.

  3. On the Action Pane, on the Customer tab, click Transactions.

  4. Select the invoice to reverse.

  5. Click Reverse transaction.

  6. Select a reason code and enter the posting date for the reversal.

  7. Click OK.

You can waive or reinstate all of the charges on the interest notes that you select. When you waive charges, the total amount to be waived cannot exceed any amount limits that have been set. For more information, see Manage customer waive limits (form). You can reinstate an interest note only if it was previously waived.

  1. Click Accounts receivable > Common > Customers > All customers.

  2. Select a customer account.

  3. On the Action Pane, on the Collect tab, click Interest note, and then click one of the following actions:

    • Click Waive to waive interest notes.

    • Click Reinstate to reinstate interest notes that were previously waived.

  4. Select the Waive or Reinstate check boxes for the interest notes that you want to waive or reinstate.

    TipTip

    To view the details for an interest note, click View interest note.

  5. Click Waive to waive the selected interest notes, or click Reinstate to reinstate interest notes that were previously waived. You will receive a message to confirm that the action was completed.

You can waive or reinstate specific interest transactions on an interest note instead of adjusting all of the charges on an interest note. When you waive charges, the total amount to be waived cannot exceed any amount limits that have been set. For more information, see Manage customer waive limits (form). You can reinstate an interest transaction only if it was previously waived.

  1. Click Accounts receivable > Common > Customers > All customers.

  2. Select a customer account.

  3. On the Action Pane, on the Collect tab, click Transaction interest, and then click one of the following options:

    • Click Waive to waive the interest transactions.

    • Click Reinstate to reinstate interest transactions that were previously waived.

  4. Select the Waive or Reinstate check boxes for the interest transactions that you want to waive or reinstate.

    TipTip

    To view the details for the interest note that includes the interest transaction, click View interest note.

  5. Click Waive to waive the selected interest transactions, or click Reinstate to reinstate interest transactions that were previously waived. You will receive a message to confirm that the action was completed.

You can waive or reinstate specific fees on an interest note instead of adjusting all of the charges on an interest note. When you waive charges, the total amount to be waived cannot exceed any amount limits that have been set. For more information, see Manage customer waive limits (form). You can reinstate a fee only if it was previously waived.

  1. Click Accounts receivable > Common > Customers > All customers.

  2. Select a customer account.

  3. On the Action Pane, on the Collect tab, click Fee, and then click one of the following options:

    • Click Waive to waive fees.

    • Click Reinstate to reinstate fees that were previously waived.

  4. Select the Waive or Reinstate check boxes for the fees that you want to waive or reinstate.

    TipTip

    To view the details for the interest note that includes the fee, click View interest note.

  5. Click Waive to waive the selected fees, or click Reinstate to reinstate fees that were previously waived. You will receive a message to confirm that the action was completed.

You can reverse all of the charges on the interest notes that you select. Reversed charges are removed from a customer’s account, and are no longer due. After the interest note is reversed, you can recalculate interest and create a new interest note. For more information, see Interest calculation (class form).

  1. Click Accounts receivable > Common > Customers > All customers.

  2. Select a customer account.

  3. On the Action Pane, on the Collect tab, click Interest note, and then click Reverse.

  4. Select the Reverse check box for the first interest note that you want to reverse. You can reverse only one interest note at a time. If you have to reverse multiple interest notes, start with the most recent interest note.

    TipTip

    To view the details for the interest note, click View interest note.

  5. Click Reverse. You will receive a message to confirm that the action was completed.

You can reverse all of the interest transactions that you select. Reversed charges are removed from a customer’s account, and are no longer due. After the transactions are reversed, you can recalculate interest and create a new interest note. For more information, see Interest calculation (class form).

  1. Click Accounts receivable > Common > Customers > All customers.

  2. Select a customer account.

  3. On the Action Pane, on the Collect tab, click Transaction interest, and then click Reverse.

  4. Select the Reverse check box for the first interest transaction that you want to reverse. You can reverse only one transaction at a time. If you have to reverse multiple interest transactions, start with the most recent interest transaction.

    TipTip

    To view the details for the interest note that includes the interest transaction, click View interest note.

  5. Click Reverse. You will receive a message to confirm that the action was completed.

You can view the detailed history of adjustments that were made for interest notes, such as the user who entered the adjustment, the type of adjustment, the amount, and when the adjustment was entered. For example, you might want to view the previous adjustments that were entered for an interest note before you create a new interest note. For more information, see Interest note adjustment history (form).

  1. Click Accounts receivable > Common > Customers > All customers.

  2. Select a customer account.

  3. On the Action Pane, on the Collect tab, click History.

  4. The interest notes adjustments for the selected customer are displayed. You can view additional details by clicking the following buttons:

    • Open interest note – Open the Interest note form, where you can view the complete details for an interest note.

    • Open adjustment invoice – Open the Free text invoice form, where you can view details of the adjustment invoice. You can also convert the adjustment invoice to a vendor payment and give a refund to the customer.

    • View user – Open the User form, where you can view details about the permissions and status of the user who entered the adjustment. For more information, see User (form).


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